[TriLUG] OT: Developer Rates

Mike M linux-support at earthlink.net
Fri Apr 23 10:27:03 EDT 2004


On Fri, Apr 23, 2004 at 07:43:26AM -0400, Jim Wright wrote:
> Again, IANAL, but this is where I had read this previously....
> >From http://www.hwg.org/resources/faqs/priceFAQ.html ...
> 
> "Is it illegal to discuss pricing? 
> The short answer: YES (at least in the U.S. where many of our members
> are).

<quote>
several brokers in DC were successfully prosecuted for simply discussing
an increase of fees at a dinner meeting
</quote>

They were not simply discussing rates.  They were coluding to fix the price for
services in an area.  They were making an agreement - a contract - with 
each other.

Asking about rates is not a crime.  You do it every time you shop for
prices for insurance, or a house, or tires.  Wal-Mart darn sure watches
the prices on lots of stuff and then tries to beat them.  Watching
prices is part of competition.  If you don't ask the price of something
then you can't compete.

> 
> Price fixing is an agreement among competitors to raise, fix, or
> otherwise maintain the price at which their goods or services are sold.
> It is not necessary that the competitors agree to charge exactly the
> same price, or that every competitor in a given industry join the
> conspiracy. Price fixing can take many forms, and any agreement that
> restricts price competition violates the law. Other examples of
> price-fixing agreements include those to: 

See that part about agreement?  Inquiring and reporting are not crimes.
It's a crime when two or more parties say something like, "Let's charge
$80/hour on all bids."

-- 
Mike

Moving forward in pushing back the envelope of the corporate paradigm.



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